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Ascott Residence Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
The AC has reviewed the nature and extent of non-audit services provided by the external auditors during
FY 2015 and the fees paid for such services. The AC is satisfied that the independence of the external auditors
has not been impaired by the provision of those services. The external auditors have also provided confirmation
of their independence to the AC. The aggregate amount of fees paid and payable to the external auditors for
FY 2015 was approximately S$2,578,000, of which audit fees amounted to approximately S$2,365,000 and
non-audit fees amounted to approximately S$213,000.
In FY 2015, the AC also met with the internal and external auditors, without Management’s presence, to discuss the
reasonableness of the financial reporting process, the system of internal controls, and the significant comments and
recommendations by the auditors. Where relevant, the AC makes reference to the best practices and guidance in the
Guidebook for Audit Committees in Singapore and the practice directions issued from time to time in relation to the Financial
Reporting Surveillance Programme administered by the Accounting and Corporate Regulatory Authority of Singapore.
The Manager confirms, on behalf of Ascott Reit, that Ascott Reit complies with Rule 712 and Rule 715 of the
Listing Manual.
Internal Audit
Principle 13:
The company should establish an effective internal audit function that is adequately resourced and
independent of the activities it audits.
The Manager has in place an internal audit function supported by CL’s Internal Audit Department (CL IA) which
reports directly to the AC and administratively to the CEO. CL IA plans its internal audit schedules in consultation
with, but independently of, Management and its plan is submitted to the AC for approval prior to the beginning of
each year. The AC also meets with CL IA at least once a year without the presence of Management. CL IA has
unfettered access to the Manager’s documents, records, properties and employees, including access to the AC.
CL IA is a corporate member of the Singapore branch of the Institute of Internal Auditors Inc. (IIA), which has its
headquarters in the United States of America. CL IA subscribes to, and is guided by, the International Standards
for the Professional Practice of Internal Auditing (Standards) developed by the IIA and has incorporated these
Standards into its audit practices.
To ensure that internal audits are performed by competent professionals, CL IA recruits and employs suitably
qualified professional staff with the requisite skill sets and experience.
CL IA identifies and provides training and development opportunities for its staff to ensure their technical
knowledge and skill sets remain current and relevant.
